BILL NUMBER: AB 1256	CHAPTERED  06/30/00

	CHAPTER   53
	FILED WITH SECRETARY OF STATE   JUNE 30, 2000
	APPROVED BY GOVERNOR   JUNE 30, 2000
	PASSED THE ASSEMBLY   JUNE 26, 2000
	PASSED THE SENATE   JUNE 22, 2000
	AMENDED IN SENATE   MAY 17, 2000
	AMENDED IN SENATE   JUNE 24, 1999

INTRODUCED BY   Committee on Agriculture (Cardoza (Chair), Maldonado
(Vice Chair), Brewer, Florez, Reyes, Thomson, and Wiggins)

                        FEBRUARY 26, 1999

   An act to amend  Sections 19606.1 and 19620.1 of the Business and
Professions Code, relating to fairs, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1256, Committee on Agriculture.  Fairs: funding.
   (1) Existing law authorizes parimutuel wagering on the outcome of
horse races, and provides that the first $1,100,000 of all revenue
distributed to racing associations for payment to the state as
license fees shall be deposited into a special account of the Fairs
and Exposition Fund and is thereafter continuously appropriated to
the Department of Food and Agriculture for supplementing purses at
fair meetings.
   (2) Existing law also provides that except for the revenues
described in (1), all revenues distributed to the state as license
fees from satellite wagering shall be deposited into a separate
account in the fund and are continuously appropriated to the
department for allocation by the Secretary of Food and Agriculture
for specified purposes related to capital improvements and
operational costs of fairs and satellite wagering facilities.
Existing law also provides that when revenues deposited into this
account exceed $11,000,000 in any fiscal year, 98% of the amount in
excess shall be transferred to the General Fund, but that repayments
of specified securities issued for the purpose of constructing or
acquiring improvements to fair racing inclosures, satellite
facilities, and access compliance projects, repayment of debts
incurred by the State Race Track Leasing Commission for the
construction of a grandstand at the Del Mar fairgrounds, and the
payment of expenses incurred in establishing and operating satellite
wagering facilities generally, shall be made before any funds are
thereby transferred.
   (3) Existing law also provides that from the total revenue
received by the California Horse Racing Board, exclusive of fines,
penalties, and unclaimed tickets, a sum to be determined by a
specified calculation shall be deposited into the Fairs and
Exposition Fund, and, if the revenues thereby deposited are in excess
of $13,000,000 in any fiscal year, one-half of the amount in excess
shall be transferred to the General Fund.  Existing law also provides
that any unallocated balance remaining in this fund is continuously
appropriated for allocation by the Secretary of Food and Agriculture
for specified capital improvements and operational support at
California fairs.
   This bill would provide that the excess satellite wagering license
fee revenues that are currently transferred directly to the General
Fund pursuant to (2) shall instead be transferred to the Fair and
Exposition Fund, and shall be subject to the calculation,
distribution, and continuous appropriation described in (3).
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 19606.1 of the Business and Professions Code is
amended to read:
   19606.1.  (a) Except as otherwise provided in Section 19606.3, all
revenues distributed to the state as license fees from satellite
wagering facilities shall be deposited in a separate account in the
fund and, notwithstanding Section 13340 of the Government Code, are
continuously appropriated from that account to the Department of Food
and Agriculture, for allocation by the Secretary of Food and
Agriculture, at his or her discretion, for the purposes set forth in
paragraphs (1) to (6), inclusive.  The concurrence of the Director of
Finance shall be required for allocations pursuant to paragraphs (1)
and (2).  Allocations pursuant to paragraphs (3) to (6), inclusive,
shall be made with the concurrence of the Joint Committee on Fairs
Allocation and Classification.
   (1) For the repayment of the principal of, interest on, and costs
of issuance of, and as security, including any coverage factor,
pledged to the payment of, bonds issued or to be issued by a joint
powers agency or other debt service or expense, including repayment
of any advances made or security required by any provider of credit
enhancement or liquidity for those bonds or other indebtedness or
expenses of maintaining that credit enhancement or liquidity,
incurred for the purpose of constructing or acquiring improvements at
a fair's racetrack inclosure, satellite wagering facilities at
fairs, health and safety repair projects, or handicapped access
compliance projects at fairs or for the purpose of refunding bonds or
other indebtedness incurred for those purposes.  As used in this
paragraph, "coverage factor" means revenues in excess of the amount
necessary to pay debt service on the bonds or other indebtedness, up
to an amount equal to 100 percent more than the amount of that debt
service, which a joint powers agency, pursuant to the resolution or
indenture under which the bonds or other indebtedness are or will be
issued, pledges as additional security for the payment of that debt
service or is required to have or maintain as a condition to the
issuance of additional bonds or other indebtedness.  Notwithstanding
any other provision of law, the department may also commit any funds
available for allocation under Article 10 (commencing with Section
19620) to complete projects funded under this paragraph in the
priority described in this paragraph.
   (2) For payment to the State Race Track Leasing Commission to be
pledged for the repayment of debt necessary to construct a racetrack
grandstand at the 22nd District Agricultural Association fairgrounds.
  This payment shall be made only if the Secretary of Food and
Agriculture determines, annually, that all other pledged revenues
have been applied to the repayment of that debt and have been
determined by the secretary to be inadequate for that purpose.
   (3) For the payment of expenses incurred in establishing and
operating satellite wagering facilities at fairs.
   (4) For the support of an equipment and operating fund to produce
and display a consolidated California signal at satellite wagering
facilities and fairs.
   (5) For health and safety repair projects at fairs, which includes
fire and life safety improvement projects, California Code of
Regulations compliance projects, and long-term deferred maintenance
projects.
   (6) For the development and payment of revenue generating
projects, the establishment of pilot projects to restructure the
current fair system, and for projects realizing a cost savings for
more efficient utilization of existing fair resources.
   (b) The Secretary of Food and Agriculture may not make an
allocation for purposes of paragraphs (2) to (6), inclusive, of
subdivision (a) until the payments required in any fiscal year
pursuant to paragraph (1) of subdivision (a) have been funded.
   (c) Pursuant to subdivision (a), the Joint Committee on Fairs
Allocation and Classification shall review and concur, or not concur,
with the secretary's determination of the allocations to be made
pursuant to paragraphs (3) to (6), inclusive, of subdivision (a) in
total, and the committee may not add to, or delete projects or line
items from, the proposed allocations.
   (d) Approval of the Joint Committee on Fairs Allocation and
Classification is deemed complete when one of the following
conditions is met:
   (1) The annual budget act is enacted.
   (2) If the secretary's recommendations are received by the Joint
Committee on Fairs Allocation and Classification after the enactment
of the annual budget act, the recommendations shall be deemed
approved 30 days after they are received unless they are rejected by
the committee.
   (e) If the Joint Committee on Fairs Allocation and Classification
does not concur with the secretary's recommendations, the secretary
may submit another set of recommendations to the committee pursuant
to this section.
   (f) The payments required in any fiscal year for the purposes of
paragraphs (1) to (3), inclusive, of subdivision (a) shall be made
before any transfer is made pursuant to subdivision (g).
   (g) Except as otherwise provided in subdivision (f), when the
revenues deposited in the separate account exceed eleven million
dollars ($11,000,000) in any fiscal year, 98 percent of the amount in
excess of eleven million dollars ($11,000,000) shall be transferred
to the Fair and Exposition Fund for allocation in accordance with
Sections 19620.1 and 19630.
   (h) All of the costs of administering the accounts created by
subdivision (a) and Section 19606.3 shall be charged to the
respective accounts.
  SEC. 2.  Section 19620.1 of the Business and Professions Code is
amended to read:
   19620.1.  (a) From the total revenue received by the board,
including revenues transferred from the Satellite Wagering Account
pursuant to subdivision (g) of Section 19606.1, but excluding money
received pursuant to Sections 19640 and 19641, the sum of two hundred
sixty-five thousand dollars ($265,000) plus an amount equal to
63/100 of 1 percent of the gross amount of money handled in the
annual parimutuel pool generated within this state, or the maximum
amount received by the state from the parimutuel pool of a racing
meeting held in this state, whichever is less, shall be paid into the
State Treasury to the credit of the Fair and Exposition Fund.  If
the revenues paid into the Fair and Exposition Fund under this
section are in excess of thirteen million dollars ($13,000,000) in
any fiscal year, one-half of the amount in excess of the thirteen
million dollars ($13,000,000) shall be transferred to the General
Fund.
   (b) From the total revenue received by the board, exclusive of
money received pursuant to Sections 19640 and 19641, and in addition
to the funds paid into the State Treasury to the credit of the Fair
and Exposition Fund as specified in subdivision (a), the Legislature
shall annually appropriate and the board shall deposit to the credit
of the Fair and Exposition Fund, such sums as it deems necessary for
the following purposes:
   (1) For the support of the board, including any costs and expenses
incurred by the Attorney General in the enforcement of this chapter
as shall be authorized by the board, including, compensation
including any fringe benefits paid to stewards and to the official
veterinarian, and an amount not less than the amount expended in the
1994-95 fiscal year for the costs of laboratory testing related to
horse racing pursuant to Section 19580.
   (2) To the Department of Food and Agriculture for the oversight of
the network of California fairs receiving money from the fund.
   (3) To the Department of Food and Agriculture for the
contributions, or the cost of benefits in lieu of contributions,
payable to the Unemployment Fund by the network of California fairs
receiving funds pursuant to this article, as a result of unemployment
insurance coverage pursuant to Section 605 of the Unemployment
Insurance Code.
   (4) To the Department of Food and Agriculture for the auditing of
all district agricultural association fairs, county fairs, and citrus
fruit fairs.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to rectify a mistake in existing law that would create an
eleven million dollar ($11,000,000) windfall in the "Satellite
Wagering Fund" and an eleven million dollar ($11,000,000) shortfall
in the "Fairs and Expositions Fund" it is necessary for this act to
take effect immediately so that the Joint Committee on Fairs
Allocation and Classification can include the changes from this act
in the fairs budget.
